Industry Research

U.S. Business Travel Likely To Surge This Summer

Posted on June 10, 2011

With summer nearly here, you might expect to see a jump in leisure travel — a chance for families to take vacations while the children are out of school.

But with the economy showing signs of rebounding and companies loosening the purse strings on travel budgets, a new survey suggests that business travel will surge during the summer while leisure travel will remain about the same as a year earlier.

So the lines at airports may be crowded this summer, not with families packing sunscreen and snorkels, but with business travelers wearing suits and lugging briefcases.

The number of business travelers who have committed to rent rooms this summer is about 8% higher than last summer, according to new data collected by Travelclick, a New York company that provides e-commerce products and services to the hotel industry. But the same report indicates leisure travel will remain about the same as last summer.

Overall, that is good news for the hotel industry because business travelers tend to stay in more expensive rooms while families on vacation often share rooms at budget hotels.

The revenue that hotels collect per room for business travelers is expected to go up 13% this summer compared with the same period last year, while revenue from rooms rented by leisure travelers is expected to rise only 4%, according to Travelclick.

"This summer, business travel has been and continues to be strong as the U.S. economy continues to recover," said Tim Hart, executive vice president of business intelligence at Travelclick.

Source: Los Angeles Times

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